The Electricity Act of 2023 marks a turning point for Nigeria's power sector, aiming to address longstanding challenges through a multi-pronged approach. Here's a deeper dive into its key aspects:

Liberalization and Competition: The Act breaks down existing monopolies, allowing diverse players to enter the market. This includes states issuing licenses for mini-grids and power plants within their territory, and private entities obtaining licenses for generation, transmission, distribution, and trading. This fosters competition, encouraging innovation and potentially driving down electricity costs.

Market Regulation and Regulatory Oversight: The Nigerian Electricity Regulatory Commission (NERC) plays a crucial role in safeguarding fair competition and market stability. They issue licenses, set market rules, and enforce regulations, ensuring a level playing field for all participants.

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